Descartes Reports 11% Revenue Growth to $187.7 Million in Q3FY26
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Source: Globenewswire
- Significant Revenue Growth: Descartes achieved revenues of $187.7 million in Q3FY26, an 11% increase year-over-year, indicating the company's ongoing expansion of solutions and content within its Global Logistics Network, enhancing its competitive edge in the market.
- Operational Income Increase: Operating income reached $56.6 million, up 24%, reflecting the company's effective strategies in addressing tariff volatility and market uncertainties faced by customers, further solidifying its leadership position in the logistics industry.
- Net Income Growth: Net income stood at $43.9 million, a 20% increase, with net income as a percentage of revenue rising to 23%, demonstrating continuous improvement in cost control and profitability, which boosts investor confidence.
- Strong Cash Flow: Cash provided by operating activities was $73.4 million, up 22%, providing ample funding for future investments and acquisitions, ensuring the company's potential for sustained growth.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on DSGX
Wall Street analysts forecast DSGX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DSGX is 112.80 USD with a low forecast of 95.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 81.550
Low
95.00
Averages
112.80
High
126.00
Current: 81.550
Low
95.00
Averages
112.80
High
126.00
About DSGX
The Descartes Systems Group Inc. is focused on logistics and supply chain management business processes. It provides on-demand, software-as-a-service (SaaS) solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. It allows customers to use its modular, SaaS solutions to route, track and help improve the safety, compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete other logistics processes by participating in the multimodal logistics community. Its solutions include cloud-based and consist of B2B service connectivity and messaging, broker and forwarder enterprise systems, global trade intelligence, regulatory compliance, e-commerce shipping, transportation management and routing. It also provides customs declaration software for logistics services providers and shippers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Barclays Upgrades Descartes Systems (DSGX) to Overweight, Raises Price Target to $105
- Rating Upgrade: Barclays upgraded Descartes Systems (DSGX) from Equal Weight to Overweight and raised the price target from $106 to $105, reflecting analysts' optimism about the company's growth prospects, particularly in the favorable 2026 software market outlook.
- Performance Recovery: Analysts noted that Descartes' organic growth rebounded in Q3 of fiscal 2026 from multi-year lows, indicating the company is moving past adverse macroeconomic impacts, with expectations for stable growth enhancing its market competitiveness.
- Acquisition Potential: Analysts believe Descartes has room for inorganic growth through small tuck-in acquisitions in the medium term, especially in the current favorable M&A environment, further solidifying its value proposition in supply chain and logistics software.
- Market Outlook: Barclays analysts emphasized that as AI adoption and new use cases emerge, Descartes' differentiated platform development will yield greater network effects, with expectations for the company to outperform the market in 2026.
Continue Reading
Dixon Mitchell Investment Counsel Capitalizes on Market Dip with $23 Million Purchase of Descartes Systems
Dixon Mitchell's Investment: Dixon Mitchell Investment Counsel Inc. increased its stake in The Descartes Systems Group by acquiring 255,154 shares, raising the total position to 339,370 shares valued at approximately $31.96 million, which now represents 1.14% of the fund's assets under management (AUM).
Performance of Descartes Systems: The Descartes Systems Group's stock has declined 24% over the past year, underperforming the S&P 500, but is viewed by Dixon Mitchell as a potential buy-the-dip opportunity due to its strong market position and steady revenue growth.
Business Model and Growth: Descartes operates a SaaS-based logistics and supply chain management platform, focusing on enhancing operational efficiency for logistics-intensive businesses, with a history of 14% annual sales growth and a recurring revenue model.
Valuation and Future Outlook: After a significant stock price drop, Descartes is now trading at a more reasonable valuation of 34 times free cash flow, positioning it as a top-tier investment opportunity in the logistics technology market as it adapts to an omnichannel world.
Continue Reading